Two Rivers Institute includes two working divisions and two service departments (janitorial and human resources) (tuitoring center and language school). The following table outlines the previous year's operations.

Service Department cost:

Janitorial $ 3,750

Human resources $16, 500

These costs are split between the two operational units. The allocation bases utilized to assign each service department, as well as the use of each allocation basis, are summarized in the table below.

		Service departments	Operating Units
	Base	Janitorial	Human Resources	Tuitoring Center	Language School
Janitorial/maintenance	Square foot		2,000	75,000	110,000
Human Resource	Number of employees	5		20	16

a. Allocate the two service departments' costs (HR, Janitorial/Maintenance) to the two operating units (tuitoring and language school) using the direct allocation method

b. Management is thinking of using the step-down method to allocate these costs coming from the service. Do you think this a good move? Why or why not?